CNBC’s Jim Cramer on Thursday recommended that investors start hunting for cyclical stocks that are at bargain rates and attracting interest from big fund investors.
As a series of large IPOs consumed Wall Street’s attention this week, money managers trimmed holdings in their biggest tech gainers to raise cash to buy into the newly public companies, which put pressure on the broader market.
The money is also moving to value cyclical plays like Dow Inc., Caterpillar and 3M, Cramer said.
I disagree with Cramer on the value cyclical plays of Caterpillar and 3M. The charts show these stocks have already moved. Look at Caterpillar or 3M, these stocks are basically back at their pre-pandemic highs meaning they’ve already ran higher and Cramer’s slow on the draw.
There are other areas of the economy and stocks that have not yet ran higher because of the pandemic. With a vaccine getting closer, we’re starting to see more traders and investors positioning in these beat up stocks in anticipation of the pandemic mostly coming to an end by May of 2021. These sectors include: some Industrials, Finance, Pharmaceuticals, Travel, and others.